Support measures adopted for riot-ravaged retail sector
Published: 12 August, 2011
Following recommendations outlined by the BRC in a letter sent to David Cameron before he addressed the House of Commons yesterday, the Government has acknowledged the impact of the rioting on the retail sector and has put measures in place to support its recovery.
David Cameron announced there would be a temporary suspension of business rates for affected premises and flexibility on VAT collection to help with cash flow problems, and that stores with inadequate insurance would have access to compensation.
The BRC is pleased with the Government response but said the short-term help for affected businesses and high streets needs to be followed up by a long-term plan of action to revitalise urban shopping areas.
BRC director general, Stephen Robertson, said: “The retail sector has been battling difficult trading conditions for much of this year and sadly for some shops these attacks will be the final straw. Even where shops do manage to stay in business it is likely not all jobs will survive. Support for retailers will translate directly into support for employees, and preserve vital local services.
“Our high streets urgently need action which will revitalise them in the long-term. When the rubble has been cleared away and stores have reopened, there will be bigger, underlying problems still to address. We look forward to working with the Government to establish an action plan which will give our communities the vibrant, well-kept and successful high streets they deserve.”
The BCSC has called for similar measures in a letter written to Mark Prisk, Minister at the department for Business, Innovation and Skills, outlining the need for the immediate introduction of measures to revive affected high streets, but also for the need for robust planning and fiscal policies to focus investment in the hearts of communities in the long-term.
Setting out BCSC’s recommendations, Edward Cooke, executive director at BCSC, said: “Repairing the physical and social fabric of the affected areas is rightly the Government’s first priority following the events of the last few days. To do this, we are asking that planned measures to allow councils to reduce business rates as part of the Localism Bill are brought forward, providing tangible and immediate benefits to those areas affected.
“In the long-term, however, current proposals to change the planning regime must include an unswerving commitment to town centres in order to provide jobs and build strong communities.
“Local partnerships, such as BIDs and town centre management partnerships have never been more important and must be supported in affected areas and the rest of the UK. We are calling for funds to be made available to do this. ”
